Since the summer, what has changed is which companies investors want to back in the AI race, and at what level. The article gives no further details about the bond offering.
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Related tickers and likely impact
MSFT
▼ Likely negativeMicrosoft
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 10/29/2026 | 530.14 |
| Change that session | -0.16% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Microsoft Is Borrowing $25 Billion for AI, Its First Bond Sale Since 2017
Microsoft priced $25 billion of senior unsecured bonds on October 29, its first U.S. dollar bond sale since 2017, with orders reaching $115 billion, or 4.6 times the deal size. The company held $64.5 billion of cash and short-term investments against $31.1 billion of long-term debt, yet fiscal first-quarter capital spending including finance leases reached $45.2 billion. The stated use of proceeds is general corporate purposes, including capex and share buybacks, and Microsoft now expects about $175 billion of calendar 2026 capex, down from $190 billion in April, mostly due to an accounting change. The 2066 bond priced at 1.05 percentage points over Treasuries, while Microsoft's five-year credit default swaps sit at about 54 basis points, compared with 116 for Meta and 275 for Oracle.
- Microsoft plans to raise $25 billion in debt as it pursues AI buildout
Microsoft announced plans to raise $25 billion through bonds, using its AAA credit rating from S&P to support infrastructure expansion. The company is targeting $170 billion in capital expenditures in 2026 to meet heavy demand from AI labs Anthropic and OpenAI and other clients. The offering is expected to close on Nov. 4, with proceeds for general corporate purposes including working capital, capital expenditures, share repurchases, acquisitions and repayment of existing debt. The article notes Microsoft reported positive free cash flow in the quarter, unlike Alphabet and Amazon, while Oracle separately plans $10 billion in new debt.
- Issuers Come to Market When Window Opens: CreditSights' Cisar
Microsoft's $25 billion bond offering, its first major issuance in almost a decade, drew up to $115 billion of orders at its peak. Amanda Lynam of Goldman Sachs said this capital-raising cycle will require a range of markets, structures and currencies, and that investors are anticipating this activity. Five hyperscalers issued $108 billion of debt in 2021, while 229 billion had been tracked this year before this deal. Winnie Cisar of CreditSights said Microsoft benefits from not having come to market often this year, though investors are carefully limiting risk concentration; Lynam said the market is bifurcating between AI-related issuers and others, and sustained index-level spread widening is difficult to see given current growth, yields and solid corporate fundamentals.
- Microsoft Issues $25 Billion in New Bonds, Adding to AI Debt Spree
Microsoft, with a market value of nearly $4 trillion, is seen as having the right credentials for a bond sale. The timing also appears favorable.
- Update: Market Chatter: Microsoft Plans to Raise at Least $25 Billion From US Bond Offering
Microsoft plans to raise at least $25 billion from a US bond offering. An update says Microsoft's filing has confirmed the sale.
- Microsoft seeks at least $25 billion in first bond sale since 2017
Microsoft is seeking at least $25 billion through a U.S. bond offering of 10 tranches with maturities from two to 40 years, returning to the investment-grade market for the first time in more than nine years. Its last high-grade issuance, in 2017, raised $17 billion, and proceeds will fund general corporate purposes such as capital expenditures, working capital, share repurchases, acquisitions and debt repayment. The sale follows a fiscal first-quarter earnings report showing strong cloud growth, as major technology companies increase spending on AI infrastructure. Initial price guidance ranges from 50 to 55 basis points over Treasuries for the two-year notes to 130 to 135 basis points for the 40-year bonds due 2066.
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Latest news
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GE Vernova shares fell as much as 4.9% in Friday's trading despite strong third-quarter results, with revenue up 27% year over year and orders surging 96% organically, amid an AI infrastructure stock sell-off. Backlog rose $20 billion to a record $197 billion, and management expects it to top $200 billion in the fourth quarter. The company will acquire Trench Group for $9 billion, funding half the price with debt, and several analysts cut price targets, including TD Cowen to $1,125 from $1,235 and Jefferies to $1,100 from $1,185. The analysts are not bearish on the stock but are concerned about conversion timing and limits on margin expansion. Management raised full-year guidance, lifting free cash flow at the midpoint to $16.5 billion from $12 billion, and doubled its buyback authorization to $20 billion.
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Intel shares plunged nearly 30% to $65.76 on Friday, wiping out more than $146 billion in market value in the worst single-day decline in over 50 years, after the chipmaker forecast fourth-quarter revenue of $15 billion to $16 billion, below the $17.07 billion Wall Street expected. Its third-quarter results were strong, with revenue up 21% to $16.5 billion and Data Center and AI revenue reaching $7.3 billion, up 78%. However, Intel forecast adjusted EPS of $0.25 versus the $0.43 estimate and a non-GAAP gross margin of 38%, down from 44.1%, citing weak PC demand, server chip manufacturing constraints and an accident at an Israel factory. CFO Dave Zinsner called 2027 an investment year and warned that positive free cash flow is probably not likely next year, as Intel spends heavily on manufacturing expansion.
- Former SEC Chair: Broadcom's $63 Billion Package Feels Like "That 08 Off-Balance Sheet Craze"
Broadcom has put together a $63 billion package so Anthropic can buy its chips, and banks plan to sell as much as about $21 billion of high-grade bonds from it as soon as early next year. Former SEC Chair Gary Gensler compared the package to the off-balance-sheet deals of 2008 and raised concerns about guarantees written by Broadcom, NVIDIA and AMD. Broadcom provides residual value support on the $42 billion of senior debt, which costs it if the chips are worth less than what is owed. Anthropic is both Broadcom's growth driver and its credit risk, as its run-rate revenue passed $30 billion while its IPO filing showed steep losses. Broadcom trades at 20x forward earnings, near its three-year low, and the author says some of that risk is already reflected in the price.
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